Chapter 1Project Summary

Introduction

Computer shop business is one of the most in demand businesses here in Bulacan.Nowadays, internet cafes are really in demand because of the fast changing technology that the people embraced just like here in the Philippines. Some have their own laptops and bring it to coffee shops so that they could relax and at the same time prepare their assignments and paper works. The people today are very busy and would want to do their jobs in a beautiful and innovative environment that could satisfy their needs and lessen their stress due to busy schedule.

Name of the Firm

The proposed name of the firm is “AC COMPUTER SHOP”. The owner will register the firm with the Department of Trade and Industry (DTI) and Local Government Unit (LGU) concerned. The firm will be registered as single proprietorship. The business is about computer shop.

Location

The business will be renting a space along Hi-way near to Government Office, and schools. The target consumers are students, teachers, office workers, and nearby neighborhood especially those people whose relatives or loved ones are abroad.The two hundred (200) meter radius requirements as provided in the existing zoning code and other applicable rules and regulations wherein computer shops and other similar establishments and places of amusements should be put up or constructed at least two hundred (200) meters away from the church, schools, hospitals and other government offices shall be strictly complied with.

Long Range Objectives of the Project

The AC Computer Shop looks forward to be the most competitive shop in Bocaue and nearby towns of Bulacan. The proponent dreams of making profit and staying long in the business.

For operating and establishing “AC COMPUTER SHOP”, I am having some objectives.

1. To earn profit at less investments.2. To satisfy our customers providing best quality service at effective price.3. Providing the service at low cost by providing the best quality at affordable price.4. To know a fair return on the capital invested by the owner.

Feasibility Criteria

The following are the most important criteria by which almost every subject is being measured:

1. Raising Funds or Capital – this is the number one need of a business man in putting up a business. Whether he will produce the money by his own pocket or he will have a business loan in a bank.

2. Recognize profit from the business – the main reason of a person for going into business is profit. People tend to enter into this kind of business because of their expectation to earn money or have an income.

3. It helps the economic growth of the area – this company will give a job opportunity to the resident of bulacan.

4. Enhance the availability of the company – the company will become stable if it has the ability to compete to his competitor and ability to continue operations yet there is expected risks in a business.

Market Strategies

To penetrate the target market, different marketing strategies and promotions will be considered. Leaflets will be distributed and handed out to various business establishments, offices, schools, bus and jeepney stations, friends, and relatives. Games and services offered will be displayed on the store window. I will offer promo’s to attract the consumer like cheaper rate for computer rental, and membership card. I will put a tarpaulin on the place itself where my shop is standing, promoting the opening of my computer shop also one month before the opening. To let the people know that there will be a new Computer Shop on the vicinity.

Lastly, I will keep developing my skills by attending seminars to improve my knowledge and to be updated in this business.

Chapter 2Market Study

As the popularity of the Internet continues to grow at an exponential rate, easy and affordable access is quickly becoming a necessity of life. “AC Computer Shop” provides communities with the ability to access the Internet and share Internet experiences in a comfortable environment.

People of all ages and backgrounds will come to enjoy the unique, up to date, and innovative environment that “AC Computer Shop” provides.

Service Description

AC Computer Shop will provide its customers with full access to the Internet and common computer software and hardware. Some of the Internet and computing services available to AC Computer Shop are listed below:

• Surf the web at warp speed! • Chat online using Instant Messenger, Yahoo, IRC or Pal Talk. • Have a video conference with a business associate, family member or friend. • Experience hot Internet games like World of Warcraft, Warcraft III, Counter-Strike,

Battle Realms and Dance Audition and autojam (3Mbps downstream and upstream) with outrageous ping times.

• Hook up your laptop to our Internet connection via Ethernet cable. You can even send a print job from your laptop to our network color laser printer.

• Rent AC Computer Shop for your late-night or all-night gaming party. • Send and receive email using your home or business account, or set up a free email

account using Yahoo, Hotmail or any other web-based service. • Create your own greeting cards, flyers, school reports or presentations using Print Shop,

Microsoft PowerPoint or Microsoft Publisher and print them in color. • Download shareware programs in the blink of an eye and copy them to a CD or Zip Disk. • Scan a picture using one of our self-service photo scanners and send via email. • Plan your next vacation or print out driving directions. • Listen to music clips and watch videos from your favorite performers with iTunes, Yahoo

Music or RealVideo/RealAudio. • Type resumes, letters and term papers with Microsoft Word. • Send and receive faxes on AC Computer Shop’s color fax machine. • Find that dream job using CareerBuilder or Monster Jobs. • Check out continuously updated news, sports highlights, weather, and stock quotes. • Enjoy quiet online board games from Yahoo. You can even join a Yahoo league!• AC Computer Shop will also accept computer repair.

You'll appreciate surfing and gaming at AC Computer Shop. It has super-fast Internet connection; you'll be visiting all your favorite sites in record time. Multi-player gaming is

quicker and more exciting when you and your friends are able to do battle with no lag and plenty of bonding for everyone.

My friendly staff is ready to help with your computer needs.

Guidelines of Business

• All malicious sites are blocked.• We’re not allowing inserting flash drive or any storage device without the consent

of the shop staff.• Eating and drinking in the gaming and typing area is not allowed, they are only

allow to eat and drink in the waiting area.• One person for one unit to maintain orderliness.

Ambiance

• Not too dark and bright because we want the shop more encouraging to work and play.

• Our computer tables have a board between users for privacy purposes.• All furniture are fully furnished and labor included.

Price Study

It is one of the considerations of the customer that enhance them to rent computers. If the price is lower they will rent.

The following services are:Amount

Internet/Games Php. 15.00 / hourPrinting black& white (short) 4.00

(Long) 5.00 Colored (logo size) 8.00

Photocopying (short) 0.75 (Long) 1.00

Scanning 10.00CD burning (max. of 17 songs) 35.00Other services:

Pay phone (for every 3 min.) 5.00Computer Repair (labor) 250.00

Factors Affecting the Market

Factors that I consider while putting up my own Computer Shop:

• Location – picking a good spot is an advantage for me.• Competition – most business – minded people think of competition as a race to charge

the lower prices in order to win the customers.• Software Licensing – it’s really important to have an original operating system, because

pirated OS can eventually damage the system.• Expected ROI – investing money in a business is a risk in my case the well tabulated if

financial statement is my major concern.

Internet Connection

The major cost of a computer shop is the internet connection. For providing better service, the proposed project will use a high band width connection for better speed as the project is going on to provide service of video chat. It is recommended that the internet connection should be taken from the best internet service provider.

Recommended Connection

If the project is set up in area, where DSL Internet connection is available, it is recommended to use DSL Internet connection instead of any other Internet connection. This will improve the speed of internet, which will improve the performance of video chat and will also reduce the telephone expense.

Marketing Program

AC Computer Shop has three main strategies. The first strategy focuses on attracting novice Internet users, by providing a novice friendly environment, AC Computer Shop hopes to educate and train a loyal customer base.

The second, and most important, strategy focuses on pulling in power Internet users. Power Internet users are extremely familiar with the Internet and its offerings. This group of customers serves an important function at AC Computer Shop. Power users have knowledge and web-browsing experience that novice Internet users find attractive and exciting.

The third strategy focuses on building a social environment for AC Computer Shop customers. A social environment, that provides entertainment, will serve to attract customers that wouldn't normally think about using the Internet. Once on location at AC Computer Shop, these customers that came for the more standard entertainment offerings will realize the potential entertainment value the Internet can provide.

Attract Power Internet Users

AC Computer Shop’s second strategy will be focused on attracting power Internet users. Power Internet users provide an important function. AC Computer Shop plans on attracting this type of customer by:

• Providing the latest in computing technology. • Providing scanning and printing services. • Providing access to powerful software applications

The large student and nearby neighborhood population will become an important part of the AC Computer Shop customer base. The student population continues to grow with the success of the educational institutes. Access to the internet, entertainment, and the upscale ambiance will attract the students. Business community is growing rapidly with the addition of new companies day by day.

AC Computer Shop will provide an opportunity to local and traveling professionals to check their e-mails communications; this will be an attracting entity for the middle income group and for the residents of Bocaue as they do not have access to the internet at their living places.

Market Growth

The market for the services AC Computer Shop will offer is growing rapidly. The computer shop hasn't come to this area yet, but similar services are growing rapidly on a global scale. Large cities that cater to large numbers of traveling business people have been saturated with businesses offering the services AC Computer Shop will offer. Business people use the Internet services to catch up on email and communications with their family. My area supports a population that has many of the same needs and interests of this larger group. The student population continues to grow as the University grows in popularity with high-school graduates from out of state. These students tend to have money and an interest in up-scale social centers. AC Computer Shop will target these groups with the use of fliers and tarpaulin.

SWOT Analysis

The SWOT analysis provides us with an opportunity to examine the internal strengths and weaknesses AC Computer Shop must address. It also allows us to examine the opportunities presented to AC Computer Shop as well as potential threats. AC Computer Shop has a useful inventory of strengths that will help it succeed. These strengths include: a knowledgeable and friendly staff, modern computer hardware, and a clear vision of the market need. Strengths are valuable, but it is also important to realize the weaknesses AC Computer Shop must address. These weaknesses include: a dependence on quickly changing technology and the cost factor associated with keeping modern computer hardware. AC Computer Shop’s strengths will help it capitalize on rising opportunities. These opportunities include, but are not limited to, a growing population of daily Internet users, and the growing social bonds fostered by the new Internet communities. Threats that AC Computer Shop should be aware of include, the rapidly falling cost of Internet access, and rising local competitors.

Strengths

1. Knowledgeable and friendly staff – I’ve gone to great lengths at AC Computer Shop to find people with a passion for teaching and sharing their Internet experiences. My staff is both knowledgeable and eager to please.

2. Modern equipment – Part of the AC Computer Shop experience includes access to modern computer equipment. My customers enjoy beautiful and convenient units’ displays, fast machines, and high-quality printers.

3. Up-scale ambiance – When you walk into AC Computer Shop or even sit at my waiting area, you'll feel the technology. Great sound background, nice lighting that sets the mood and the whole area was clean.

4. Clear the vision of the market need – AC Computer Shop knows what it takes to build an upscale computer shop. I and my staff know the customers, the technology, and how to build the service that will bring the two together.

Weaknesses

1. A dependence on quickly changing technology – AC Computer Shop is a place for people to experience the technology of the Internet. The technology that is the Internet changes rapidly. Product lifecycles are measured in weeks, not months. AC Computer Shop needs to keep up with the technology because a lot of the AC Computer Shop experience is technology.

2. Cost factor associated with keeping state-of-the-art hardware – Keeping up with the technology of the Internet is an expensive undertaking. AC Computer Shop needs to balance technology needs with the other needs of the business. One aspect of the business can't be sacrificed for the other.

Opportunities

1. Growing population of daily Internet users – The importance of the Internet almost equals that of the telephone. As the population of daily Internet users increases, so will the need for the services AC Computer Shop offers.

2. Social bonds fostered by the new Internet communities – The Internet is bringing people from across the world together unlike any other communication medium. AC Computer Shop will capitalize on this social trend by providing a

place for smaller and local Internet communities to meet in person. AC Computer Shop will grow some of these communities on its own by establishing chat areas and community programs. These programs will be designed to build customer loyalty

Threats1. Rapidly falling cost of Internet access – The cost of access to the Internet for

home users is dropping rapidly. Internet access may become so cheap and affordable that nobody will be willing to pay for access to it. AC Computer Shop is aware of this threat and will closely monitor pricing.

2. Rising local competitors – Currently, AC Computer Shop is enjoying a first-mover advantage in the local computer shop market. However, additional competitors are on the horizon, and I need to be prepared for their entry into the market. Many of my programs will be designed to build customer loyalty, and it is my hope that my quality service and up-scale ambiance won’t be easily duplicated.

Market Needs

As the popularity of internet continues to grow at an exponential rate, easy and affordable access is quickly becoming a necessity of life. Public wants access to the methods of communication and volumes of information now available on the internet, and access at a cost they can afford and in such a way that they are not socially, economically, and politically isolated.

Market Trends

More than ninety percent of my customers are youngsters and their only objective to get to these is to get enjoyment.

Marketing Strategies

I create some advertising strategies like I will print a thousand of fliers printed with the total cost of Php. 908.00 (500 pieces on small fliers that cost Php. 220.50, while the second fliers are also 500 pieces with the cost of Php. 687.50), a month before the opening me and my staff will distribute the fliers. I will also put tarpaulin on the place itself where my shop is standing a month before the opening. It will promote the services offered and also the opening of my Computer Shop. To let the people know that there will be a new Computer Shop on the vicinity. The tarpaulin size is 64” x 100”and amounting Php. 497.75.

Management Strategies

Maintain a focus on quality products with bottom-line growth through cost reduction and optimal performance. I also focus on technology and innovation to make sure our employees skills are up to standard with today’s mode of production.

Demand

Demand in Internet Services for the last five years:

Table 1.1

Figure 1.1

As you can see there is 8.08 percent of demand in internet service in year 2004 and increase of 6.6 percent on the next year. In 2006 there is 17.28 percent of demand in internet service and increase of 6.14 percent in year 2007 and in the year 2008 there’s a demand of 36.54 percent in internet services.

I will use the “Arithmetic Straight Line” method in projecting the demand for the next five years.

Yc = a + Yi - 1 Yc = initial value Yn = final value

Yi – 1 = value for past years

where: a = Yn – YcN-1

Computation:a = 175,110 – 38,720 = 34,098

5 – 1

2009 = 34,098 + 175,110 = Php. 209,208.002010 = 34,098 + 209,208 = Php. 243,306.002011 = 34,098 + 243,360 = Php. 277,404.00

2012 = 34,098 + 277,404 = Php. 311,502.002013 = 34,098 + 311,502 = Php. 345,600.00

Projected Demand for five years:

Table 1.2 Figure 1.2

YearQuantity Demand

(in peso)2009 209,2082010 243,3062011 277,404

YearQuantity Demand

(in peso)

2004 38,720

2005 70,400

2006 82,800

2007 112,250

2008 175,110

2012 311,5022013 345,600

Supply

Supply in the Internet Services for the last five years:

Table 2.1 Figure 2.1

YearQuantity Supply

(in peso)

2004 21,120

2005 35,200

2006 41,400

2007 51,800

2008 107,770

As you can see there is 8.21 percent of supply in internet service in year 2004 and increase of 5.47 percent on the next year. In 2006 there is 16.09 percent of supply in internet service and increase of 5.05 percent in year 2007 and in the year 2008 there’s a supply of 41.87 percent in internet services.

I will use the “Arithmetic Straight Line” method in projecting the supply for the next five years.

Yc = a + Yi - 1 Yc = initial value Yn = final value

Yi – 1 = value for past yearswhere: a = Yn – Yc

N-1

Computation:a = 107,770 – 21,120 = 21,663

5 – 1 2009 = 21,663 + 107,770= Php. 129,433.002010 = 21,663 +129,433 = Php. 151,096.002011 = 21,663 + 151,096= Php. 172,759.00

2012 = 21,663 + 172,759= Php. 194,422.002013 = 21,663 + 194,422= Php. 216,085.00

Projected Supply for five years:

Table 2.2 Figure 2.2

YearQuantity

Supplied (in peso)

2009 129,4332010 151,0962011 172,7592012 194,4222013 216,085

Demand and Supply Analysis

The table and figure below will shows the projected demand and supply of AC Computer Shop for the next five years in percentage.

Table 3

YearPercentage of

Quantity Demand

Percentage of Quantity Supplied

2009 15.08 14.982010 17.54 17.492011 20 202012 22.46 22.512013 24.92 25.02

100% 100%

Figure 3

The figure 3 shows the projected demand and supply of AC Computer Shop for the next five years.

In year 2009 there is a 15.08% of demand on internet services, that’s why AC Computer Shop needs a 14.98% to supply the demand. In 2010 there is 17.54% in demand and 17.49% in supply, while in 2011 it has a 20% both in demand and in supply. And in 2012 there is 22.46% in

demand and 22.51% in supply. For the fifth year 2013 it has a 24.92% in demand and 25.02% of supply.

In totality, every year AC Computer Shop will increase of 2.46% in demand and 2.51% in supply.

Chapter 3Technical Feasibility

In this chapter, I will discuss the product, the manufacturing process of my business including the plant size and production schedule. I will also discuss the machinery and equipment and also the other computer application that I will use in the business.

In order for me to lessen my expenses, I purchase equipment in packages. I focus much in the hardware and software. I research on how much the hardware and software will cost me, through net surfing.

The Services

The following services of AC Computer Shop are listed below:

• Gaming • Typing• Searching the net• Printing/ Photo

copying/Fax/Scanning

• Down loads• Cd – burning • Computer Repair

For gaming I will install popular online games like Warcraft, Counter strike, Battle Realms, Dance Audition, and Autojam. In typing I will install original Operating System of MS Office Professional 2007 like MS Word, Excel, Power point, Access, Desktop Publishing. I will have printer, Scanner, Photocopier, and Fax Machine for the Printing, Photo copying, and faxing. AC Computer Shop will also offer other services like DVD/CD burning, Pay phone, and Computer Repair.

Manufacturing Process

This is the AC Computer Shop’s manufacturing process.

The “AC Computer Shop” will provide the product and services to the customers, and then the customer will give income or profit to AC Computer Shop in return. The income or profit that the customer gave in return will used to provide the product and services.

Plant Size and Production Schedule

The “AC Computer Shop” will operate seven days a week. AC Computer Shop opens at 8:00 am ahead to the other competitors. This will lead my shop of being known. My goal is to give the needs of the students and others in early manner of time.

AC Computer Shop’s Time Schedule

Machinery and Equipment

The proposed project is going to be of 10 units of computer systems and the details of the equipment required for the project is given below:

List of Hardware: Brand name Description Amount

Package PC’s

Pentium 410 units of PC w/ Complete accessories Php. 15,500.00

Printer Samsung SCX-4200

3-in-1; Laser Printer, Scanner, Copier 4,999.00

Fax MachinePanasonic KX-FT933

Fax Machine with Automatic Paper Cutter 5,790.00

Modem DSL Smart Bro 999.00Computer Application Software:OS MS Office 2007 4,999.00Anti-virus and Anti spy ware 7,200.00Game Software:Warcraft (dota) 1,450.00Counter Strike 350.00Battle Realms 720.00Dance Audition 1,968.00Autojam 1,968.00Total Machinery and Equipment Cost Php. 45,943.00

Furniture and Fixtures

The project is based on Pentium-4 computer systems. Second hand systems are also available in the market at much lower prices. The reason for using the latest system is the new software coming in the market that requires more powerful systems which will provide better service to the customer. The price of computer systems varies with the introduction of new technology in the market.

OpeningClosin

gOperating

hoursMonday 8:00 AM 11:00 PM 15Tuesday 8:00 AM 11:00 PM 15Wednesday 8:00 AM 11:00 PM 15Thursday 8:00 AM 11:00 PM 15Friday 8:00 AM 11:00 PM 15Saturday 8:00 AM 11:00 PM 15Sunday 8:00 AM 11:00 PM 15Total Operating Hours per week 105

Description Quantity Unit Price Total PriceComputer Cabinet 10 250 Php. 2,500.00Table for waiting area 1 400 400.00Air Conditioner 1 6,500 6,500.00Mono block chair 10 230.5 2,305.00office chair for server 1 745.75 745.75Cabinet for the supplies 1 950 950.00Pad Lock 2 750 1,500.00Total Furniture and Fixtures Cost Php. 14,900.75

Plant Location

Plant Layout“AC Computer Shop”

Building and Facilities

Description Amount

Rent ( 2,500*12) Php. 30000.00Construction of the Shop 3,000.00Total Building and facility Cost Php. 33,000.00

Raw Materials and Supplies

The material needed for the operation of the business:

Description Price

Bond Paper Php 150.00 (500pcs./rim)

CD w/ Case 13.00 /set

Ball pen 48.00 /box (12pcs)

Stapler 100.00

Staple wire 30.00

HP 96 Black Ink 800.00

HP 97 Tri-Color 850.00

Record Book 25.00

Fire Extinguisher 10 lbs. 3,950.00

Total Raw Materials and Supplies Cost Php 5,966.00

Utilities

Description Monthly Cost Total Amount (year)

Electricity Php. 5,000.00 Php. 60,000.00Water 117.50 1,410.00Total Utility Cost Php. 61,410.00

Waste Disposal

AC Computer Shop can manage the waste disposal properly, because every Monday, Wednesday, Friday and Sunday is the schedule in collecting all the garbage in barangay Poblacion, Bocaue.

Cleaning Materials Price

Broom & Dust Pan Php. 105.00 – replace every 5 monthsTrash Can 100.00Feather Dust 60.00 – 2pcs. Good for 3 monthsMop 250.00 – replace every 5 monthsPowder Soap 60.00 – 6pcs. Good for 2 monthsAir Freshener 175.00 – replace every 2 months

Total Waste Disposal Cost Php. 750.00

Legal Requirements

Registration with BIR ( Bureau of Internal Revenue) Registration of Business Name with DTI (Department of Trade and Industry) Barangay Clearance and Business Permit Mayors Permit

Legal Requirements Cost

Production Cost

The details of production cost for the project are given below:

Labor Requirements

Estimated Annual Cost for Salaries and Wages

Description Monthly Salary Annual Salary

Manager Php. 8,000.00 Php. 96,000.00

Employee 4,500.00 54,000.00

Total Salaries and Wages Cost Php. 150,000.00

* Additional fee to my employee for computer repair (labor) Php 250.00

Requirement on Hiring an Applicant

Applicant must be 20 years old, residence of Bocaue …• Resume• Two valid I.D.• Birth Certificate (NSO)• N.B.I Clearance

Barangay Clearance Php 150.00

Mayor’s Permit 4,000.00

Business Tax 950.00

Business Plate 100.00

Sanitary Permit 250.00 Occupational Tax 400.00. Inspection Fee 500.00 Filing 100.00

Processing 120.00 Zoning 350.00 Electrical Inspection 250.00 Fire Inspection 350.00BIR 300.00DTI 5,750.00Total Legal Requirement Cost Php 13,570.00

• SSS number• Vocational Graduate (computer technician)• Hardworking